Which of the following can the government not use directly to control the economy?

a) Pay rates within the private sector
b) Pay rates in the public sector
c) Investment in state education
d) Benefits available for the unemployed and sick

Answer: a) Pay rates within the private sector

Economics

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Questions about employment history on a loan application are used to prevent

A) moral hazard. B) adverse selection. C) market signaling. D) risk aversion.

Economics

Refer to Figure 10.8. Other things equal, an increase in the demand for money and the accompanying change in the real interest rate would best be represented by

A) a movement from point A to point C. B) a movement from point A to point D. C) a shift from LM1 to LM2. D) a shift from LM2 to LM1.

Economics